The following is a media release issued by the Saskatoon Region Association of REALTORS® regarding residential sales and listing statistics for the month of June 2016.
Inventory levels remain elevated at just over 2,000 units largely due to a decline in the level of home sales year-to-date (Norm’s note: Of interest to me is that residential inventory actually fell when compared to June of 2015. This is the first time in more than three years that inventory levels are down from the previous year at month-end).
In the first half of 2016, the number of homes that have sold in Saskatoon totaled 1,873 units representing an 8.2 percent decline from the same period last year. At the current rate of sales, it would take just over five months to liquidate the current active listings. The five-year average is 3.76 months (Norm’s note: June posted it’s largest annual decline for the 2016 calendar year as sales tumbled to 390, down from 462 in June of last year, for the weakest June in six years).
(Norm’s note: while sales weakness in the condo category has been apparent through 2016, single-family homes reported their first significant down month following some modest softening in May, before which time, this category was holding its own on an annual basis)
It also appears that a few sellers are willing to wait until supply drops before placing their property on the market as the number of new listings year to date is down 3 percent compared to 2015 with a total of 5,074 properties listed to the end of June. The average number of days for a home to sell is up slightly from 42 to 46 days.
The current sales to listing ratio of 42 percent is down slightly reflecting a firm buyer’s market. Pricing seems to be only slightly affected in a negative way with the average price of $354,000 down by 1.7 percent from a year ago. The median price is also down from $350,000 to $335,500.
(Norm’s note: a closer look at prices by category show single-family home prices trending upwards for the fourth consecutive month to the point where they are almost even with last year. Townhouses break away and post some annual gains while apartment prices tank).
"It is actually an ideal time for anyone considering a purchase" according to Jason Yochim, CEO with the Saskatoon Region Association of REALTORS®. "In addition to having a broad selection in most price ranges, interest rates remain low and prices are stable," he adds.
So far in 2016, the homes that have sold have sold for 97.3 percent of the asking price. This underscores the importance of proper pricing for a home to sell in a reasonable time and close to asking. With few exceptions, this market is not conducive to speculative selling.
"If a seller is serious about selling it is important to get sound advice on the current market conditions for the area, the competition and how that impacts the pricing of their property," cautions Yochim. "Buyers have access to market information, are well informed and in most cases have the assistance of a professional REALTOR®."
For market activity in rural residential areas and communities surrounding Saskatoon, the total number of sales year-to-date was 514 for the first half of 2016 which is a decrease of 14.8 percent from the same period last year. The average selling price for 2016 is $304,334 down 2.9 percent from last year. The number of active listings is down 3.2 percent from last year with 1,161 properties available at the end of June.
For the major cities of Martensville and Warman, the combined total of active listings at the end of June was 343, down from 379 in June of 2015. Meanwhile, the number of sales in June was 55, a 10 percent increase from June of 2015.
Jason Yochim CAE, CRAE Chief Executive Officer - Saskatoon Region Association of REALTORS®